Do report the Form 1099-K as received so that the IRS can match it in their system.
For your offset, enter two amounts:
1. Enter the amount of sales for personal goods as a negative amount.
2. Enter the cost of the cake supplies as a negative amount.
To clarify the steps more for this, try:
First, enter Form 1099-K as received. It is essential that the full amount be entered. Be sure to include in the description: Personal Property Sales and Other Income
Next, repeat this process with the cost of the items sold. The IRS allows a deduction for personal property up to the amount of the sale.
- You should be at Other Miscellaneous Income Summary with the Personal Property Sales amount listed.
- Select +Add Another Income Item on the lower left side.
- At Other Taxable Income enter Cost of Personal Property for description and the negative amount and Continue. (To continue with the example, the amount would be -100.)
- Now returned to Other Miscellaneous Income Summary, select Done.
@tmundy
